Insurance best way to protect wealth

Insurance protects in the event of an emergency.

From B3 interest rates on your loans: paying off loans on time (or ahead of schedule) can save you thousands of dollars in interest.

Borrow: Your credit score

even if you’re a diligent saver, at some point you may have to borrow money to cover a large expense like a home or car. maybe you borrowed money as a college student and are currently dealing with student loans or credit card debt.

Borrowing is not necessarily a bad thing—as long as you know how to compare loans and maintain a healthy credit score

ApR (Annual percentage Rate) is the key to comparing loans and credit cards. ApR takes into account both the interest rate and fees to give you a more accurate idea of how much interest you’ll pay each year. A low ApR means you’ll pay less interest over time, but how do you get one?

In general, the higher your credit score, the less interest you’ll be charged.

That means that if you’ve had financial difficulties in the past, you can get stuck in a vicious cycle where all of your money goes to paying off interest.

That’s why building healthy credit is one of the most important steps to becoming financially literate.

Keeping a balance on your credit card is one of the easiest ways to rack up debt, but choosing the right credit card and using it responsibly can actually help you improve your credit score. learn more about how credit cards work in our complete guide.

Protect: Buy insurance

once you’ve set yourself up with a solid budget and investment strategy, it’s important to protect the money that you’ve made.

This means regularly reviewing your bank accounts and credit card statements for mistakes or suspicious activity; keeping documents and passwords secure to prevent scams and identity theft; and buying the right kind of insurance to protect yourself in the event of an emergency.

How to assess your literacy

An easy way to assess your financial literacy is to ask yourself some questions about your own personal finances.

•Do you know budget?

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Do you have an emergency fund that covers at least three months of basic living expenses?

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Do you have a plan for retirement?

If you have debt, do you have a plan to pay it off?

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Do you know your credit score and how to improve it?

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How to improve your now

If you answered no to some (or most!) of the questions above, don’t worry. There are a few concrete things you can do right now to take control of your finances and improve your financial literacy.

•Create a personal monthly budget. Your budget is the foundation of your financial health, and it’s pretty easy to get started. learn how to create a personal budget here.

• start an emergency fund. experts recommend setting aside at least three months’ worth of basic living expenses in case of an unexpected financial burden like a layoff or large medical expense.

• make a plan for retirement. The easiest way to start investing is with a retirement account.

• make a plan to get out of debt. — Bungalow. how to create financial

apersonal literacy right